Ascena Retail Group closes Ann Taylor, Loft, Lou & Grey, and Lane Bryant sale to Sycamore Partners - Columbus Business First (2024)

Ascena Retail Group has completed the sale of several of its brands, including Columbus-based Lane Bryant, to a new owner.

New York City-based Sycamore Partners LLC bought Lane Bryant and its sister brands Loft, Ann Taylor and Lou & Grey, from the bankrupt New Jersey company for $540 million. The deal closed Dec. 23, according to company filings with the Securities and Exchange Commission.

“We are pleased to have completed this transaction, which secures a path for the long-term success of Ann Taylor, Loft, Lou & Grey, and Lane Bryant,” Gary Muto, CEO of Ascena (OTCMKTS: ASNAQ), said in a statement. “We have worked diligently to maximize the value of our brands, and we are confident they will thrive under Sycamore’s ownership.”

The asset purchase agreement said little about Sycamore Partners' plans with Lane Bryant and the other brands. "(Sycamore) has committed to retaining a substantial portion of the retail stores and associates affiliated with these brands," the company said earlier this month.

Sycamore, a private equity firm with $10 billion in assets under management,has a history of buying and quickly turning around struggling brandswith aggressive and sometimes painful cost-cutting.

“We’re pleased to have completed our purchase of these four highly respected apparel brands and are excited by the opportunity to unlock their full potential as part of our portfolio,” said Stefan Kaluzny, managing director of Sycamore Partners, in the statement. “We look forward to working with the brands’ associates to continue delivering great products and memorable experiences to their customers, while positioning each for long-term success.”

Lane Bryant is one of three big retail brands in Columbus going private heading into 2021. Ascena sold its sister brand Justice to New York-based Bluestar Alliance LLC. Meanwhile Victoria's Secret is in the process of splitting off from L Brands Inc. (NYSE: LB) as a separate entity.

Ascena counted1,534 local employees between the Justice and Lane Bryant headquarters in Columbus and New Albany this year. But itannouncedabout 350 layoffs for its local headquarters operations in August, and then another 134 layoffs in November.

Kirkland & Ellis LLP, Alvarez and Marsal Holdings LLC, and Guggenheim Securities LLC are serving as Ascena's legal, restructuring and financial advisers in the deal. Davis Polk & Wardwell LLP is adviser to Sycamore Partners.